Holder in Due Course

Question 1

Elements of Holder in Due Course

Answer 1

1) Negotiable Instrument
2) Holder
3) Authenticity not apparently questioned
4) Holder MUST pay value
5) Good Faith
6) Without Notice at time of instrument acquisition
7) Shelter Rule
8) Burden of Proof.

Question 2

HDC

Real Defenses

Answer 2

1) Infancy
2) Duress (which avoids obligation)
3) Lack of legal capacity (Make obligation void)
4) Illegality (Making obligation void)
5) Fraud in execution
6) discharge to insolvency
7) Omission of requirement consumer protection language.
8) SOL
9) Payment to former holder.
10) Alteration
11) Unauthorized signature and forgeries